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Justia Weekly Opinion Summaries

Business Law
March 12, 2021

Table of Contents

Azarax, Inc. v. Syverson

Business Law, Legal Ethics, Mergers & Acquisitions

US Court of Appeals for the Eighth Circuit

Kimp v. Fire Lake Plaza II, LLC

Business Law, Civil Procedure, Landlord - Tenant

Alaska Supreme Court

United Bank v. Buckingham

Banking, Business Law, Insurance Law

Maryland Court of Appeals

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The Oprah Interview as a Truth Commission

LESLEY WEXLER

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Illinois Law professor Lesley Wexler explains how Oprah’s interview with Prince Harry and Meghan Markle might illuminate how a formal truth commission to deal with legacies of racism and colonialism might function in the British empire. Professor Wexler describes the purpose and function of state-operated truth commissions and notes the similarities and differences between those and the interview.

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Business Law Opinions

Azarax, Inc. v. Syverson

Court: US Court of Appeals for the Eighth Circuit

Docket: 19-2927

Opinion Date: March 8, 2021

Judge: Steven M. Colloton

Areas of Law: Business Law, Legal Ethics, Mergers & Acquisitions

Azarax filed suit against defendant and his law firm, alleging legal malpractice and breach of fiduciary duty. Azarax claimed that defendant and his firm were negligent in their representation of Convey Mexico and that Azarax had claims against defendant and his firm as a successor by merger to Convey Mexico. The Eighth Circuit affirmed the district court's dismissal of the complaint and agreed with the district court that Azarax was not a valid successor in interest to Convey Mexico. In this case, the summary judgment record established that the shareholders of Convey Mexico did not unanimously provide written consent for the merger with Azarax Holding, so the merger was not valid. Therefore, Azarax lacked standing to sue defendant and his law firm. The court modified the judgment to dismiss the complaint without prejudice.

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Kimp v. Fire Lake Plaza II, LLC

Court: Alaska Supreme Court

Docket: S-17298

Opinion Date: March 5, 2021

Judge: Craig F. Stowers

Areas of Law: Business Law, Civil Procedure, Landlord - Tenant

A business owner formed a brewing company with plans to open a brewpub. He signed a lease that provided rent-free access to a commercial unit for a period of time to allow him to prepare the rental space prior to opening for business. But the brewing company encountered numerous delays during construction and did not open for business as planned. It also did not pay rent once the rent-free period ended. After the property owner received no rent for several months, it entered the property and changed the locks. The business owner then sued, claiming the property owner breached the lease, tortiously interfered with a business relationship, and breached the implied covenant of good faith and fair dealing. The property owner counterclaimed that the brewing company breached the lease. On cross-motions for summary judgment, the superior court dismissed all claims against the property owner and ruled in the property owner’s favor on its counterclaim. The court also denied the business owner’s request to compel discovery and awarded the property owner over $200,000 in damages. The business owner appealed the superior court’s grants of summary judgment, its denial of his motion to compel discovery, and its award of damages. Finding no reversible error, the Alaska Supreme Court affirmed.

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United Bank v. Buckingham

Court: Maryland Court of Appeals

Docket: 1m/20

Opinion Date: March 9, 2021

Judge: Getty

Areas of Law: Banking, Business Law, Insurance Law

The Court of Appeals held that a change in life insurance beneficiary constitutes a conveyance under the Maryland Uniform Fraudulent Conveyance Act (MUFCA), Md. Code Comm. Law 15-201(c), and that a guardian of property is not granted the authority to change a life insurance beneficiary on a policy of the ward under section 15-102(t) of the Estates and Trusts Article (ET). In a case arising from a decade-long dispute between the adult children of the Buckingham family and United Bank, the United States District Court for the District of Maryland certified two questions of law to the Court of Appeals regarding whether the children intentionally defrauded the Bank when they successfully diverted significant amounts of life insurance proceeds away from the declining family business and to their personal use. The Court of Appeals answered the questions as follows: (1) a change of the beneficiary designation of a life insurance policy constitutes a conveyance under MUFCA; and (2) the guardian of property does not have the authority to change the beneficiary on a life insurance policy of a ward under ET 15-102(t).

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